Government confirms US GDP growth of 3% in the second quarter (Image: Getty Images/Canva)
The economic growth of USA accelerated in the second quarter amid strong consumer spending, the government confirmed on Thursday (26).
O Gross Domestic Product expanded at an unrevised annualized rate of 3.0 percent last quarter, the Commerce Department said in its third estimate of second-quarter GDP.
Economists polled by Reuters had predicted that the GDP figure would not be revised.
First-quarter growth was revised up to a 1.6% rate from the previously reported 1.4% pace.
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The government revised national accounts data from the first quarter of 2019 through the first quarter of 2024. The revisions showed that economic growth and corporate profits were stronger in 2023 than previously estimated.
The revision narrowed the gap between GDP and gross domestic income, an alternative measure of economic growth. Some economists have argued that the gap suggests GDP is overstating the health of the economy.
Gross domestic income, which measures economic activity from the income side, increased at a rate of 3.4% in the last quarter, revised upward from an initially estimated 1.3% pace. In the January-March quarter, the increase was 3.0%, revised upward from a previously reported 1.3% rate.
In principle, GDP and gross domestic income should be the same, but in practice they differ because they are estimated using data from different and largely independent sources.